Fond du Lac band and city of Duluth file appeals in casino profit-sharing ruling

Both sides are filing appeals after a judge declared that the band does not need to share profits from its Fond-du-Luth casino with the city of Duluth. But the band, which declared victory in the case, wants to reverse a decision that would still require it to pay $14 million in back payments to the city. The band stopped making the payments in 2009, which sparked the legal battle.

Both sides are filing appeals after a judge declared that the band does not need to share profits from its Fond-du-Luth casino with the city of Duluth. But the band, which declared victory in the case, wants to reverse a decision that would still require it to pay $14 million in back payments to the city. The band stopped making the payments in 2009, which sparked the legal battle.

Duluth maintains the band needs city approval before expanding its reservation at Fond du Luth casino to include an adjacent hotel. The city attorney says a St. Louis County judge dismissed the lawsuit because a federal court is a better venue for it.

Voting members of the Fond du Lac Band of Lake Superior Chippewa will choose the next chair of their Reservation Business Committee. The position oversees a budget of about $180 million and businesses, including a casino amid a legal battle with the city of Duluth. Pete DeFoe is challenging incumbent Karen Diver for the four-year term.

Duluth claims the tribe breached its contract with the city. The News Tribune reports the band is seeking federal authority to expand its downtown gaming activities to include a former hotel without obtaining approval from the city.

Two years ago the Fond du Lac tribe stopped sharing casino revenue with the city of Duluth, arguing their contract violated the federal Indian Gaming Regulatory Act. That prompted the city to sue, and on Monday a district court judge ruled in the tribe's favor. The ruling will likely mean millions of dollars more in annual revenue for the tribe, and that much less for the city of Duluth.

The city has decided the tribe will no longer operate a parking garage next to its downtown casino. A city official told the News Tribune it's part of a plan to consolidate all parking facilities in Duluth. New management will begin in June.

Duluth Mayor Don Ness says he still wants to find agreement with the Fond du Lac band so both sides benefit from the tribe's downtown casino. The city received a letter from the U.S. Dept. of the Interior giving a 10-day deadline for the city to explain why the casino lease shouldn't be voided. The city and the tribe are locked in a revenue sharing legal dispute.